WBAG:FIVE

Stock Analysis Report

Executive Summary

X5 Retail Group N.V. creates, develops, and operates grocery retail stores primarily in Russia.

Rewards

Trading at 63.3% below its fair value

Earnings are forecast to grow 14.76% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 4.23% is not well covered by earnings



Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has X5 Retail Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FIVE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

FIVE

2.1%

AT Consumer Retailing

0.1%

AT Market


1 Year Return

32.5%

FIVE

1.8%

AT Consumer Retailing

4.3%

AT Market

Return vs Industry: FIVE exceeded the Austrian Consumer Retailing industry which returned 1.8% over the past year.

Return vs Market: FIVE exceeded the Austrian Market which returned 4.3% over the past year.


Shareholder returns

FIVEIndustryMarket
7 Day1.3%2.1%0.1%
30 Day3.5%2.0%-0.3%
90 Day5.7%2.1%0.2%
1 Year39.0%32.5%5.9%1.8%8.1%4.3%
3 Yearn/a6.8%-3.9%25.9%14.5%
5 Yearn/a10.5%-6.4%53.9%32.6%

Price Volatility Vs. Market

How volatile is X5 Retail Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is X5 Retail Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FIVE (€31.21) is trading below our estimate of fair value (€85.12)

Significantly Below Fair Value: FIVE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FIVE is poor value based on its PE Ratio (22.2x) compared to the Consumer Retailing industry average (21x).

PE vs Market: FIVE is poor value based on its PE Ratio (22.2x) compared to the Austrian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: FIVE is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: FIVE is overvalued based on its PB Ratio (5x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is X5 Retail Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIVE's forecast earnings growth (14.8% per year) is above the savings rate (-0.1%).

Earnings vs Market: FIVE's earnings (14.8% per year) are forecast to grow faster than the Austrian market (9.8% per year).

High Growth Earnings: FIVE's earnings are forecast to grow, but not significantly.

Revenue vs Market: FIVE's revenue (8.9% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: FIVE's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FIVE's Return on Equity is forecast to be high in 3 years time (23.7%)


Next Steps

Past Performance

How has X5 Retail Group performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIVE has high quality earnings.

Growing Profit Margin: FIVE's current net profit margins (1.6%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: FIVE's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: FIVE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FIVE had negative earnings growth (-4.2%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-0.7%).


Return on Equity

High ROE: Whilst FIVE's Return on Equity (22.69%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is X5 Retail Group's financial position?


Financial Position Analysis

Short Term Liabilities: FIVE's short term assets (RUB148.6B) do not cover its short term liabilities (RUB328.4B).

Long Term Liabilities: FIVE's short term assets (RUB148.6B) do not cover its long term liabilities (RUB569.6B).


Debt to Equity History and Analysis

Debt Level: FIVE's debt to equity ratio (192.9%) is considered high.

Reducing Debt: FIVE's debt to equity ratio has increased from 114.4% to 192.9% over the past 5 years.

Debt Coverage: FIVE's debt is well covered by operating cash flow (57.4%).

Interest Coverage: FIVE's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: FIVE has a high level of physical assets or inventory.

Debt Coverage by Assets: FIVE's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is X5 Retail Group's current dividend yield, its reliability and sustainability?

4.09%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%1.6%markettop25%4.5%industryaverage3.7%forecastin3Years6.0%

Current dividend yield vs market & industry

Notable Dividend: FIVE's dividend (4.23%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: FIVE's dividend (4.23%) is low compared to the top 25% of dividend payers in the Austrian market (4.47%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FIVE has been paying a dividend for less than 10 years.

Growing Dividend: FIVE's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93.8%), FIVE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FIVE's dividends in 3 years are forecast to be covered by earnings (82.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Igor Shekhterman (49yo)

4.3yrs

Tenure

₽347,000,000

Compensation

Mr. Igor Shekhterman has been the Chief Executive Officer and Member of Management Board at X5 Retail Group N.V. of Alfa Group Consortium since November 12, 2015 and serves as its Chairman of Management Bo ...


CEO Compensation Analysis

Compensation vs Market: Igor's total compensation ($USD5.42M) is above average for companies of similar size in the Austrian market ($USD2.45M).

Compensation vs Earnings: Igor's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Igor Shekhterman
Chairman of Management Board4.3yrs₽347.00m0.013% RUB1.1m
Frank Lhoëst
Corporate Secretary and Member of Management Board0yrs₽33.00mno data
Svetlana Demyashkevich
Chief Financial Officer2.7yrsno datano data
Quinten Peer
Member of the Management Board0.8yrsno datano data
Natalia Zagvozdina
Head of Corporate Finance & IR0yrsno datano data
Anton Valkov
Chief Information Officer0.08yrsno datano data
Ekaterina Lobacheva
General Counsel0yrsno datano data
Elena Konnova
Corporate Communication Director5.1yrsno datano data
Tatiana Krasnoperova
Director of Human Resources & Organisational Development1.1yrsno datano data
Vladimir Rusanov
Head of Public Relations0yrsno datano data

1.9yrs

Average Tenure

49yo

Average Age

Experienced Management: FIVE's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Nadia Shouraboura
Member of Supervisory Board1.5yrs₽4.00mno data
Mikhail Fridman
Member of Supervisory Board13.8yrsno datano data
Stephan DuCharme
Chairman of Supervisory Board4.3yrs₽39.00m0.046% RUB4.1m
Michael Kuchment
Member of Supervisory Board4.3yrs₽13.00m0.0014% RUB123.8k
Karl-Heinz Holland
Member of Supervisory Board1.5yrs₽4.00mno data
Alexander Torbakhov
Supervisory Board Member1.1yrsno datano data
Geoffrey King
Member of Supervisory Board4.8yrs₽35.00m0.0081% RUB725.7k
Peter Demchenkov
Vice Chairman of Supervisory Board0.9yrs₽24.00m0.0028% RUB247.5k
Andrei Elinson
Member of Supervisory Board3.8yrsno datano data

3.8yrs

Average Tenure

49yo

Average Age

Experienced Board: FIVE's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

X5 Retail Group N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: X5 Retail Group N.V.
  • Ticker: FIVE
  • Exchange: WBAG
  • Founded: 1975
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: US$9.613b
  • Listing Market Cap: US$8.904b
  • Shares outstanding: 271.54m
  • Website: https://www.x5.ru

Number of Employees


Location

  • X5 Retail Group N.V.
  • Parkstraat 20
  • The Hague
  • Zuid-Holland
  • 2514 JK
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FIVELSE (London Stock Exchange)YesSPONS GDR REGSGBUSDMay 2005
PJPDB (Deutsche Boerse AG)YesSPONS GDR REGSDEEURMay 2005
FIVEMISX (Micex - Rts)YesSPONS GDR REGSRURUBMay 2005
FIVELBATS-CHIXE (BATS 'Chi-X Europe')YesSPONS GDR REGSGBUSDMay 2005
FIVEWBAG (Wiener Boerse AG)YesSPONS GDR REGSATEURMay 2005

Biography

X5 Retail Group N.V. creates, develops, and operates grocery retail stores primarily in Russia. As of November 11, 2019, the company operated 15,752 company-operated stores under the Pyaterochka, Perekrestok, and Karusel brands. It also engages in wholesale operations and online retail, as well as providing franchise and other services. The company was founded in 1975 and is headquartered in The Hague, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 23:39
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.